About this tool
Make the result useful—not just precise-looking
Model a cohort of orders before and after returns. Returned revenue is reversed, a chosen share of product cost is recovered, and return shipping, processing, and retained fees are applied to returned orders.
How to use it
- Enter order count, selling price, product cost, fulfillment, and payment fees.
- Add return rate, recoverable product-cost share, return shipping, processing, and retained fees.
- Calculate the before-and-after profit impact.
Useful for
- Evaluating a high-return category
- Budgeting a returns-policy change
- Comparing recoverability or reverse-logistics scenarios
Assumptions
- All orders have the same economics.
- Returned orders lose their full selling price.
- The recoverable percentage applies only to product cost.
Limitations
- The model excludes exchanges, partial refunds, taxes, resale discounts, and timing effects.
- Actual retained payment and marketplace fees depend on provider policy.
Common questions
Frequently asked questions
What does recoverable product cost mean?
It is the share of the original product cost retained in usable inventory after inspection, damage, or disposal.
Why separate retained fees?
Some payment or marketplace fees are not refunded. Enter the amount retained per returned order based on your provider policy.
Does a return always lose the full sale?
This model assumes a full refund. For partial refunds, use a scenario that adjusts selling price or order count accordingly.